Historic & New Markets Tax Credits


Ulmer & Berne’s real estate attorneys are well-versed in the use of Historic and New Markets Tax Credits. We have represented developers (both nonprofit and for-profit), lenders and investors in the strategic use of historic and new markets tax credits, including those provided for under both federal and state law. We counsel clients in the acquisition, renovation and financing of historic properties, and in the proper use of preservation easements.

Our considerable institutional knowledge of this niche helps clients avoid expensive future pitfalls. By advising clients on the savvy use of these public instruments, we help them leverage financial resources that help close financing gaps in development deals involving the rehab of commercial, industrial, retail, residential and other types of properties.

Ulmer in the News Henry Bailey Crain’s Cleveland Business profiled Cleveland-based real estate attorney Henry Bailey in its recent “Five to Watch” feature. Henry was one of only five, up-and-coming attorneys in the Cleveland area profiled. For the full article, please click here. Please note that the article may require...

Ulmer Events On Thursday, April 13, Ulmer will host a tax credits seminar in Cincinnati. The seminar features a presentation from real estate group chair Mary Forbes Lovett titled, “Building Strong Urban Cores: How to Use Historic and New Markets Tax Credits.”

Cleveland-based attorney Henry Bailey was recently appointed to the Board of Zoning Appeals for the City of Cleveland. Mr. Bailey’s five-year term begins August 1, 2016. Mr. Bailey is an associate working in Ulmer & Berne’s Real Estate Practice Group and focusing his practice on land use, zoning, and development and historic...

“Ulmer & Berne’s Lovett: Cleveland’s Urban Core is on the Rise” Midwest Real Estate News April 11, 2016

Ulmer & Berne LLP is pleased to name Mary Forbes Lovett chair of the firm’s nationally recognized Real Estate Practice. Ms. Lovett, a partner in the firm’s Cleveland office, represents developers, nonprofit organizations, lenders, and investors in a wide variety of urban development projects utilizing federal and state historic, low...

“Dealmakers Q&A: Ulmer & Berne’s Mary Forbes Lovett” Law360 September 12, 2014

February 2014 – Section 619 (commonly referred to as the “Volcker Rule”) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) prohibits proprietary trading by banking entities. Originally, the proposed regulatory implementation of this broad rule appeared to create some unintended consequences as it relates to tax credit...

January 2014 – On December 30, 2013, the IRS issued Revenue Procedure 2014-12, setting forth a safe harbor for federal historic rehabilitation tax credit (HTC) transactions. In these transactions, investors are allocated HTCs through an ownership interest in either (i) a “developer partnership” which owns and develops a historic building,...

Representative Experience

New Markets Tax Credits (NMTC)

  • Representing a developer in connection with a $60 million mixed use development in Cleveland’s Central Business District (CBD) utilizing leveraged NMTC together with federal and state historic tax credits.
  • Representing a developer in connection with the work out of a leveraged NMTC project in Ithaca, New York.
  • Representing a company in connection with its expansion in Cleveland, Ohio utilizing leveraged NMTC.
  • Representing a nonprofit developer utilizing leveraged NMTC structure to finance the expansion of its facility in the City of Cleveland.
  • Representing a nonprofit developer utilizing a leveraged NMTC structure to finance its new corporate headquarters in the City of Cleveland.
  • Representing a developer of a mixed use project (housing and retail) in the Playhouse Square area utilizing federal and state NMTC along with federal and state historical tax credits.
  • Represented a leveraged lender in connection with a NMTC transaction financing a green house in the City of Cleveland utilizing an employee cooperative structure.
  • Representing a developer in connection with a mixed-use project, including a boutique hotel, in the CBD of Cleveland, Ohio utilizing leveraged NMTC and federal and state historic tax credits.
  • Represented a lender in connection with a mixed-use project in University Circle of Cleveland, Ohio utilizing leveraged NMTC.
  • Represented a not-for-profit developer in connection with the renovation of a historic theatre using federal and state historic tax credits and leveraged NMTC in Cleveland. 
  • Represented a municipal developer with respect to its urban development projects involving the renovation of a historic hotel using leveraged NMTC and federal and state historic tax credits in Piqua, Ohio.
  • Representing a non-profit developer with respect to its theatre renovation project using leveraged NMTC and federal historic tax credits in Marietta, Ohio.
  • Represented a developer of a mixed-use property in Chicago, Illinois on a transaction involving layered financing, including city financing and NMTC. 
  • Represented a for-profit developer in a mixed-use project located in the central business district of Cleveland, Ohio, which involved federal and state historic tax credits, leveraged NMTC, tax increments financing (TIF) and subordinate financing.
  • Represented a nonprofit in the Fairfax neighborhood in the development of a community building using leveraged NMTC.
  • Represented an investor using leveraged NMTC and subordinate financing for an employee cooperative laundry facility in the University Circle area.

   Historic Tax Credits

  • Representing an investor in connection with a mixed use project in the Playhouse Square area utilizing federal and state historic tax credits.
  • Representing a developer in connection with a $60 million mixed-use development in Cleveland’s CBD utilizing leveraged NMTC together with federal and state historic tax credits.
  • Representing a developer in the conversion of an office building in the Playhouse Square area to multifamily/retail project utilizing federal and state historic tax credits twinned with federal and state NMTC.
  • Representing a developer in connection with a commercial building across from Cleveland State University involving federal and state historic tax credits.
  • Represented a lender in a project involving historic tax credits and preservation easements on the west side of the Flats in Cleveland, Ohio.
  • Counseled a developer on the acquisition, renovation, and financing of the conversion of the Gateway District historic office building into apartments and retail space. Project challenges included multiple ground leases, ownership issues, and multi-layered financing.
  • Advised a for-profit owner and developer in the rehabilitation of 116 units using state and federal historic tax credits and Low Income Housing Tax Credits (LIHTC) in Cleveland, Ohio.
  • Advised a nonprofit owner and developer in the rehabilitation of permanent supportive housing units using federal historic tax credits and LIHTC in Cleveland, Ohio.
  • Represented a nonprofit independent college of art and design with respect to historic tax credits in Cincinnati, Ohio.
  • Represented a nonprofit in developing permanent supportive housing using federal and state historic tax credits together with LIHTC in Youngstown, Ohio.
  • Represented a developer of multiple warehouses to housing conversions using historic tax credits, U.S. Department of Housing and Urban Development (HUD) financing and preservation easements in Cleveland, Ohio.
  • Represented an owner/developer in connection with the renovation, development, and financing of a project involving multifamily and retail units. Funding included multi-layered public and private financing as well as historic tax credits and conservation easements.
  • Advised a developer in an $81 million redevelopment of a warehouse into a multifamily project in the Warehouse District. This was the largest HUD project (at the time) with multiple subordinate lenders utilizing historic tax credits and preservation easements in Cleveland, Ohio.
  • Counseled a developer on the conversion of a historic department store in downtown Indianapolis into apartments, including its acquisition, financing, and renovation. Issues involved Urban Development Action Grant financing, historic rehabilitation tax credits, multiple cross easements, and facade easement deductions.
  • Represented a developer with respect to its mixed-use commercial and residential real estate project using federal and state historic tax credits together with NMTC leveraged loans in Cleveland, Ohio.
  • Representing a developer with respect to its residential real estate project using federal and state historic tax credits in the Ohio City neighborhood of Cleveland, Ohio.
  • Advised a hospital in the development of its health center and spa using federal and state historic tax credits and NMTC to leverage the structure.
  • Representing a nonprofit owner in the rehabilitation and development of 216 units in a former hospital building with historic designation using state and federal historic tax credits and LIHTC in Cleveland, Ohio.
  • Represented a local developer in connection with federal and state historic tax credits, together with HUD financing, with respect to renovation of a factory into a mixed-use development in Cincinnati, Ohio.
  • Represented the developer of a mixed-use project utilizing federal and state historic tax credits and leveraged NMTC loans in Piqua, Ohio.
  • Represented a developer in the Cleveland State University area for a mixed-use development using federal and state historic tax credits.
  • Represented a nonprofit developer in the Gordon Square Art District of a theatre renovation using combined federal and state historic tax credits and NMTC.
  • Represented a developer in an adaptive reuse of a manufacturing facility into housing using HUD and city financing together with historic tax credits.
  • Represented a developer of a substantial rehabilitation of two apartment buildings in the Detroit Shoreway neighborhood using LIHTC (four percent) and federal and state historic tax credits.
  • Representing a nonprofit developer in connection with the rehabilitation of a historic theatre in Marietta, Ohio using federal and state historic tax credits together with NMTC.
  • Representing a developer in connection with the conversion of a newspaper facility into a mixed-use project using federal and state historic tax credits together with HUD financing in Cincinnati, Ohio.
  • Represented an investor with respect to its purchase of historic tax credits for a multi-phased project in Chicago, Illinois.

   Preservation Easements

  • Advising purchaser of a historic estate subject to a conservation easement in connection with the substantial rehabilitation of the structure in Cincinnati, Ohio.
  • Advised a lender in connection with subordination of its mortgage to preservation easements in Cleveland, Ohio.
  • Represented numerous developers in Cleveland’s Warehouse District using historic tax credits and preservation easements.
  • Advised an owner/developer on the conversion of an industrial facility into moderate-income residential apartments using historic tax credits and conservation easements. The project involved extensive environmental remediation, multi-layered financing and complicated air rights easements, reciprocal easements, and leases of adjacent land. Work also included negotiations with Cuyahoga County for easements and leases of public land.
  • Represented a developer in the conversion of the historic Warehouse District building into apartments. Issues included leases of public land for parking, historic tax credits, multi-layered financing, and facade and air rights easements in Cleveland, Ohio.

   TIF Projects

  • Represented developers in an approximately $17 million mixed-use residential and retail project (green building) consisting of approximately 49 residential units (including 20 percent affordable housing), and retail establishments consisting of nearly 13,000 square feet of retail space, together with required parking in downtown Oberlin. Project financing included TIF, including compensation agreement with local school district.
  • Represented developers of a proposed 400,000 sq. ft., $110 million mixed-use project in the City of Lakewood. The negotiated project included TIF and other city and state financings. Due to the passage of a referendum, the project did not go forward.
  • Represented developers in the $23 million redevelopment of historic property in Cleveland for a mixed-use office and retail shopping center project. Project financing included TIF, federal, state, and city loans and grants, and private equity.
  • Represented a developer of a four-phase, mixed-use redevelopment of property in Shaker Heights, Ohio. Project involved TIF, eminent domain, and private equity.
  • Represented a local city in its financing renovation of two historic arcades in downtown Cleveland, Ohio for a mixed-use (hotel and retail) project financed by TIF, historic tax credits and private equity.
  • Represented a company in financing and constructing its new company headquarters project in downtown Cleveland. The $38 million in project financing included Port Authority bonds, TIF, City of Cleveland, Cuyahoga County, private foundation, and State of Ohio loans and grants.
  • Represented developers of a 208-room hotel in downtown Cleveland, Ohio. The $28 million in project financing included TIF, Urban Development Action Grant (UDAG), and private equity.
  • Represented a developer in TIF negotiations in connection with a marina and boardwalk project.
  • Represented a developer of residential project in connection with a TIF agreement for roadway/infrastructure improvements.
  • Represented a developer in connection with a TIF agreement for a mixed-use project.

   HUD Transactions

  • Represented developers in connection with numerous HUD 221(d)(4) financings in the warehouse district in Cleveland, Ohio.
  • Represented a multi-family developer in connection with a HUD 221(d)(4) substantial rehabilitation project in Cincinnati, Ohio.
  • Represented a developer in connection with a HUD 221(d)(4) substantial rehabilitation project in Indianapolis, Indiana.
  • Represented a HUD lender in connection with numerous HUD refinancings.
  • Represented a borrower in connection with the HUD refinancing of its senior housing portfolio.
  • Represented a borrower in connection with a HUD 108 loan for the construction of a new manufacturing facility in Cleveland, Ohio.
  • Representing a developer in connection with a HUD 221(d)(4) substantial rehabilitation project in Cincinnati, Ohio.

   LIHTC Transactions

  • Represented a nonprofit developer in connection with specialized housing for women twinning historic tax credits and LIHTC in Youngstown, Ohio.
  • Represented a nonprofit developer in connection with specialized housing for women twinning historic tax credits and LIHTC in Cleveland, Ohio.
  • Represented a developer with respect to its affordable housing project, Hacienda at Sunnyslope, in Phoenix, Arizona.
  • Advised a general partner and developer in the $7,500,000 construction loan plus $6,811,000 equity syndication to the Ohio Capital Corporation for Housing of a 64-unit elderly housing LIHTC project in Bowling Green, Ohio.
  • Advised a developer in the $4,500,000 construction loan plus $4,870,000 equity syndication to the Ohio Capital Corporation for Housing of a 30-unit single family home LIHTC project in Massillon, Ohio.
  • Advised a developer in the $4,200,000 construction loan plus $5,000,000 equity syndication to the Ohio Capital Corporation for Housing of a 30-unit townhouse LIHTC project in Akron, Ohio.
  • Advised a general partner and developer in the $6,328,000 construction and permanent loan financing and $8,060,000 equity syndication of a 45-unit LIHTC project in Detroit, Michigan.
  • Advised a developer in the $9,500,000 equity syndication of a LIHTC project involving 60 new single family homes in Elyria, Ohio.
  • Advised a developer in the $9,400,000 equity syndication of a LIHTC project involving 60 new single family homes in Cleveland, Ohio.
  • Advised a developer in the $4,100,000 equity syndication of a LIHTC project involving 48 elderly units in Salem, Ohio.
  • Advised a developer and managing member in the $5,700,000 equity syndication of 60 elderly LIHTC units in Norwalk, Ohio.
  • Advised a borrower and developer in the $6,025,000 construction and bridge loan financing plus $7,754,000 equity syndication of a 74-unit elderly housing LIHTC project in Toledo, Ohio.
  • Advised a developer in the $6,100,000 construction and permanent loan financing plus $5,800,000 equity syndication of a LIHTC project involving 60 single family homes in Indianapolis, Indiana.
  • Advised a developer in the $7,200,000 construction and permanent loan financing plus $7,342,000 equity syndication of a LIHTC project involving 50 single family homes in Massillon, Ohio.
  • Advised a developer in the $4,900,000 construction and permanent loan financing plus $4,712,000 equity syndication of a LIHTC project involving 40 single family homes in Youngstown, Ohio.
  • Advised a general partner and developer in the $8,391,000 construction and permanent loan financing plus $8,772,000 equity syndication of a LIHTC project involving 49 single family homes in Detroit, Michigan.
  • Advised a developer in the $5,350,000 construction and permanent loan financing plus $5,200,000 equity syndication of a LIHTC project involving 40 single family homes in Ashtabula, Ohio.
  • Advised a developer in the $4,900,000 construction and permanent loan financing plus $4,775,000 equity syndication to the Ohio Capital Corporation for Housing of a LIHTC project involving 40 single family homes in Mansfield, Ohio.
  • Advised a developer in the $4,874,000 construction and permanent loan financing plus $4,023,000 equity syndication of a LIHTC project involving 40 single family homes in Youngstown, Ohio.
  • Advised a general partner and developer in the $6,850,000 construction and permanent loan financing plus $6,900,000 equity syndication of a LIHTC project involving 50 single family homes in Detroit, Michigan (Brightmoor III).
  • Advised a general partner and developer in the $7,018,000 construction and permanent loan financing plus $6,900,000 equity syndication of a LIHTC project involving 50 single family homes in Detroit, Michigan (Brewer Park).
  • Advised a general partner and developer in the $6,850,000 construction and permanent loan financing plus $6,900,000 equity syndication of a LIHTC project involving 50 single family homes in Detroit, Michigan (Pinigree Park).
  • Advised a general partner and developer in the $6,850,000 construction and permanent loan financing plus $6,900,000 equity syndication of a LIHTC project involving 50 single family homes in Detroit, Michigan (Nortown Homes).